Net supply of housing: 2008-09, England

- Annual housing supply in England reached 166,570 net additional dwellings in 2008-09. This is a 20 per cent decrease on the 207,370 net additional homes supplied in the previous year, and the lowest annual level of net housing supply since 2003-04.

- Eight out of the nine English regions experienced a decrease in the number of net additional dwellings supplied in the 2008-09 financial year. The North East saw the largest annual decrease (43 per cent), followed by the North West (37 per cent).

- London was the only region to experience an annual increase in net housing supply (three per cent). This Statistical Release presents figures on net additional dwellings in England and its regions up to 2008-09. The figures in this release for earlier years have been revised to include updated figures provided by regional assemblies as part of the usual data collection process.

Annual net additional dwellings, also referred to as net housing supply, measure the absolute change in the dwelling stock between 1 April and 31 March the following year. The absolute change in the dwelling stock is the number of new house building completions plus any gains or losses through conversions, demolitions and changes of use.

National trends in housing supply

Figure 1: Trends in net additional dwellings since 2000-01, England

Table 1: Annual net additional dwellings since 2000-01, England

| Financial year | England | % change to previous year | |----------------|---------|---------------------------| | 2001-02 | 130,510 | -1% | | 2002-03 | 143,680 | 10% | | 2003-04 | 154,770 | 8% | | 2004-05 | 169,450 | 10% | | 2005-06 | 186,380 | 10% | | 2006-07 | 198,770 | 7% | | 2007-08 | 207,370 | 4% | | 2008-09 | 166,570 | -20% |

Annual estimates of net supply have been available from annual changes in housing stock since the late 1960s. In 2000-01 a new data return was introduced to improve estimates of net supply. Since 2001-02, net housing supply increased for six consecutive years, reaching a total of 207,370 net additional dwellings in 2007-08. In 2008-09 the number of net additions to dwellings was 166,570 a decrease of 20 per cent compared to the 2007-08 net additions figure. This is the lowest annual level of net housing supply since 2003-04. Breakdown of net housing supply

Table 2: Components of net housing supply, 2006-07 to 2008-09, England

| Components of net housing supply | 2006-07 | 2007-08 | 2008-09 | Change 2007-08 to 2008-09 | |---------------------------------|---------|---------|---------|--------------------------| | New build completions | 193,100 | 200,300 | 157,600 | -42,700 | | plus | | | | | | Net conversions | 7,600 | 9,000 | 8,600 | -400 | | plus | | | | | | Net change of use | 20,100 | 17,600 | 16,600 | -1,000 | | plus | | | | | | Net other gains | 500 | 1,000 | 300 | -800 | | less | | | | | | Demolitions | 22,300 | 20,500 | 16,600 | -3,900 | | gives | | | | | | Net additional dwellings | 198,800 | 207,400 | 166,600 | -40,800 |

In 2008-09 95 per cent of net additional dwellings were accounted for by new build completions, this is two percentage points less than in the previous years. The next largest components of net additional dwellings were the net change of non dwellings brought into residential use (ten per cent) and demolitions (minus ten per cent).

Net housing supply decreased by 20 per cent (40,800 dwellings) between 2007-08 and 2008-09, this compares to an increase of four per cent between 2006-07 and 2007-08. This fall resulted from a decrease of new build completions (-42,700), net conversions (-400), net gains of other types of dwellings such as mobile homes and temporary dwellings (-800) and the number of additional dwellings resulting from changes of use (-1,000). The number of demolitions fell by 3,900, this compares to a decrease of 1,800 demolitions between 2006-07 and 2007-08. Regional trends in housing supply

Figure 2a: Trends in net additional dwellings in the North East, the North West and Yorkshire and the Humber

Figure 2b: Trends in net additional dwellings in the East Midlands, the West Midlands and the East of England

Figure 2c: Trends in net additional dwellings in London, the South East and the South West In 2008-09, net housing supply was highest in the South East (32,320 dwellings) and lowest in the North East (4,310 dwellings).

National annual net housing supply increased by 76,950 dwellings from 130,510 net additional dwellings in 2001-02 to 207,370 in 2007-08, before falling to 166,570 net additional dwellings in 2008-09. All regions have experienced higher levels of annual net housing supply since 2001-02 except the East Midlands, whose net supply of housing for 2008-09 was 960 dwellings less than in 2001-02.

Eight out of the nine English regions experienced a decrease in the number of net additional dwellings supplied in the 2008-09 financial year. The North East saw the largest annual decrease (43 per cent), followed by the North West (37 per cent). London was the only region to experience an annual increase in net housing supply (three per cent).

Table 3: Components of net housing supply in the regions, 2008-09

| Region | New build completions | Net conversions | Net change of use | Net other gains | Demolitions | Net additional dwellings | |-------------------------|-----------------------|-----------------|-------------------|----------------|-------------|-------------------------| | North East | 6,060 | 170 | 420 | 0 | 2,330 | 4,310 | | North West | 17,590 | 370 | 2,030 | 160 | 3,840 | 16,310 | | Yorkshire and the Humber| 14,120 | 370 | 2,170 | -100 | 1,780 | 14,780 | | East Midlands | 12,980 | 300 | 1,270 | 60 | 400 | 14,210 | | West Midlands | 13,430 | 350 | 1,650 | 0 | 2,650 | 12,780 | | East | 19,720 | 580 | 1,440 | 90 | 1,140 | 20,700 | | London | 24,520 | 2,310 | 3,040 | 0 | 1,570 | 28,300 | | South East | 29,700 | 2,160 | 2,480 | 0 | 2,020 | 32,320 | | South West | 19,520 | 2,030 | 2,150 | 40 | 880 | 22,870 | | **Total England** | **157,630** | **8,640** | **16,640** | **270** | **16,590** | **166,570** |

Demolitions as a percentage of net additional dwellings were the highest in the North East (54 per cent) followed by the North West (24 per cent). The East Midlands had the lowest percentage of demolitions as a percentage of net additional dwellings (three per cent). This compares to ten per cent demolitions as a percentage of net additional dwellings at England level. New build completions as a percentage of net additional dwellings were the highest in the North East (141 per cent) followed by the North West (108 per cent). The South West had the lowest percentage of new build completions as a percentage of net additional dwellings (85 per cent). At England level, 95 per cent of net additions to dwellings were accounted for by new build completions. Housing supply targets

The 2007 Comprehensive Spending Review introduced a target to increase the number of net additional homes provided per annum to 240,000 by 2016.

Since the target baseline of 186,600 net additional dwellings in 2005-06, net housing supply increased to 198,770 dwellings in 2006-07 and 207,370 dwellings in 2007-08. In 2008-09 net housing supply fell to 166,570 dwellings.

As the main component of net housing supply, new house building completions are a leading indicator for monitoring the above target. New build completions in the 12 months ending December 2009 were 17 per cent lower than completions in the calendar year 2008. Given this fall in new build completions, it is likely that net housing supply will fall in 2009-10.

Data collection

This release takes annual figures on net housing supply in England from two data sources:

- information submitted to Communities and Local Government by local authorities in the North East, North West and Yorkshire and the Humber through the Housing Flows Reconciliation (HFR) form; and

- information collected on joint Regional Planning Body and Communities and Local Government returns (also known as ‘joint returns’) in the remaining six Government Office Regions.

From 2000-01 to 2003-04, all local authorities submitted data to Communities and Local Government through the HFR form. Since this date, Communities and Local Government has started to work jointly with Regional Planning Bodies on joint returns; the purpose of the joint returns is to ensure consistency between the net housing supply figures reported in regional Annual Monitoring Reports (AMRs) and those published by central government.

Strengths and weaknesses of the data

The HFR form collects data from local authorities in the three northern regions and the figures include imputation for a small number of missing returns. In 2008-09, a 97 per cent response rate was achieved with only three missing local authority returns.

The HFR return requires local authorities to submit a full break down of housing flows by tenure over the previous year; this includes figures for new house building, conversions, demolitions, changes of use and transfers between tenures. Regional Planning Bodies submitting joint returns collect, collate and validate data from local authorities in their region before passing the information onto Communities and Local Government. The net housing supply figures in this release are as reported by the Regional Planning Bodies.

The Regional Planning Body joint returns do not contain the same depth of information on housing flows as collected directly from local authorities through the HFR form. As a minimum, joint returns are required to contain information on opening stock as at 1 April and closing stock as at 31 March for each local authority in the region.

The joint returns were introduced by Communities and Local Government following discrepancies between the net housing supply figures reported in regional AMRs and the figures submitted by local authorities to and subsequently published by Communities and Local Government. The main reason for the discrepancies was a timing difference in when the figures were compiled. The joint returns were introduced to provide one set of consistent data on housing supply, with the aim of serving the needs of central, regional and local government, thus avoiding duplication and reducing burden on data suppliers.

Prior to 2000-01, estimates of net housing supply were made by subtracting dwelling stock as at 31 March in any given year from the stock as at 31 March in the previous year. Accompanying tables and charts

Accompanying tables and charts are available to download alongside this release:

Tables:

1a Annual net additional dwellings: England and the regions; 1b Annual net additional dwellings and annual percentage change: England and the regions; 1c Components of net housing supply: financial years, England; 1d Components of net housing supply: England and the regions; 1e Annual net additional dwellings: by local authority

Charts:

2a Trends in net additional dwellings: England 2b Trends in net additional dwellings: the regions

In addition, four live tables showing net additions to the dwelling stock in England can be accessed in the 'Live tables' section ("Live tables on stock") at www.communities.gov.uk/housingstatistics. Background notes

01. The annual net additional dwellings figure, or net housing supply, is the absolute change in dwelling stock between 1 April and 31 March the following year.

02. The net additional dwellings figure is derived from the number of new build permanent dwellings; plus the net gain from dwelling conversions; plus the net gain of non dwellings brought into residential use; plus net additions from other gains and losses to dwelling stock (such as mobile and temporary dwellings); less any demolitions during the financial year.

03. The breakdown of net housing supply figures shown in table 2 of the Statistical Release have been estimated for some regions submitting a ‘joint return’.

04. The new build completions figures given in table 2 of the Statistical Release do not match those published in the Communities and Local Government quarterly house building Statistical Release. Data for the quarterly house building release are supplied by local authority Building Control departments and the National House-Building Council, and measure starts and completions of new build permanent dwellings. In addition to local authority and NHBC completions, the house building completion figures given in table 2 of this release include completions certified by Independent Approved Inspectors. Also, the annual net supply of housing data collection period is much longer than that for the Quarterly House Building statistics. This may result in a more complete picture of new build completions. The table 2 figures will also include completions of new build non permanent dwellings for some regions submitting net housing supply data via a ‘joint return’.

05. Regional Planning Bodies have the duty to draft and review Regional Spatial Strategies. In the future, once the “local democracy, economic development and construction bill” is enacted by parliament in 2010, Regional Spatial Strategies and Regional Economic Strategies will be merged to create a de facto regional strategy. The future drafting and review of Regional Strategies will be the joint responsibility of the Regional Development Agencies and the Leaders Board which will be made up of local government stakeholders in the region.

06. The tables and charts accompanying this release are shown above in the ‘Accompanying tables’ section. Tables and charts are provided in MS Excel.

07. Additional tables showing annual net additions to the dwelling stock in England can be found in the Communities and Local Government Housing Live Tables.

08. National and regional figures in the accompanying Excel tables are presented rounded to the nearest 10 dwellings.

09. Sources are shown at the foot of individual accompanying tables and charts.

10. The Housing Flows Reconciliation (HFR) local authority data collection started in 2000-01. Net additional dwellings before this date are estimated by subtracting the dwelling stock as at 31 March in any given year from the stock as at 31 March in the previous year. The percentage change on previous year figure for 2000-01 has been estimated by comparing the net additional dwellings in 2000-01 (as recorded on the HFR) to the estimated net additional dwellings in 1999-00 (using the method described above).

11. Joint return figures in this release have been revised back to 2004-05 if later figures have been provided to Communities and Local Government by Regional Planning Bodies. It is currently our policy not to revise figures submitted through the HFR form in later years. We are currently reviewing our revisions policy.

12. Revisions to net additions figures submitted by local authorities as part of the Housing and Planning Delivery Grant process have not been incorporated in this release.

13. The 2008-09 England net housing supply figure and all regional and district level figures are provisional and subject to revision in subsequent annual releases.

14. Details of officials who receive pre-release access to the Communities and Local Government annual ‘Net Supply of Housing’ release up to 24 hours before release can be found at: www.communities.gov.uk/corporate/researchandstatistics/statistics/nationalstatistics/

15. The next net additions release will be published in 2011 as soon as figures are available, and will include net additional dwellings up to 2009-10. User consultation

Users’ comments on any issues relating to this statistical release are welcomed and encouraged. Responses should be addressed to the "statistical enquiries" contact given in the "Enquiries" section below.

Enquiries

Media Enquiries: office hours: 0303 444 1136 out of hours: 0303 444 1201 e-mail: press@communities.gov.uk

Statistical enquiries: e-mail: housing.statistics@communities.gov.uk telephone: 0303 444 2272